The emergence of electronic cash systems has given consumers a more convenient and efficient way to conduct financial transactions. Payments technology can be used for more than just topping up a cellphone or feeding a parking meter. Online shopping today is impossible without the use of credit cards that allow users to purchase goods, submit damage claims or return products on a wide range of retailers’ websites.
Might be some disadvantages when it comes to storing all your personal information on company servers. You risk both hacking and accidents (natural disasters which can destroy data backups). They remove paper-based steps in processes which requires lots of patience - but are also quite costly (administrative expenses are up 130% over last 10 years). And processing times is also another disadvantage - processing times can take up to 3 days but this will never exceed 48 hours with EFT
With e-payments, financial transaction values can be easily transferred over the internet. They have made international business easy. There are numerous advantages like big order sizes, secure transactions and less probability of human error but there are also some disadvantages mainly security concerns and low transaction rates in some countries.
- Cheap international payments from shop to bank as well as easier between bank accounts of commercial counterparties
- International trade easier for firms with different currencies with fewer risk exposures
- Security concerns clarified with a separate transmission medium
- Unit of account more flexible so national central banks can focus more on upping value than inflation control
Disadvantages - Low transaction rates and security concerns
One of the most prominent disadvantage would be that fashion retailers are unable to check out customers’ QR code if they prefer alternative payment methods such as touchpay and contactless cards than a traditional credit card or cashier, or if they want to pay with a digital ledger like blockchain instead of via an app store.